The Washington State Lottery was established in 1982 when voters passed Initiative Measure 62. The measure authorized lottery games to generate revenue for the state government. Since then, the Washington Lottery has contributed billions of dollars to important state programs and services.
Where does Washington Lottery revenue go?
By law, all net proceeds from the sale of lottery tickets, after prizes are paid and administrative costs are covered, are deposited into the state General Fund. The Washington State Legislature then appropriates these funds to a variety of programs and services across the state.
The four main beneficiaries of Lottery proceeds are:
- Education
- Economic Development
- Health and Human Services
- Natural Resources and Recreation
In the 2021-2023 biennium, the Washington State Legislature appropriated over $230 million in Lottery revenues to these key areas.
Education
Education receives the largest portion of Lottery proceeds. In the current biennium, the Legislature has allocated $172.8 million or 75% of Lottery revenues to education programs across the state.
These education programs include:
- Opportunity Pathways Account – Helps students from low and middle-income families access higher education.
- Washington College Grant – Provides financial aid to eligible students attending college in Washington.
- Washington State University Medical School – Supports operating costs of the Elson S. Floyd College of Medicine.
- Early Childhood Education and Assistance Program (ECEAP) – Prepares children from low-income families for kindergarten.
- K-12 School Construction – Helps fund building costs for K-12 schools.
Economic Development
In the current biennium, the Legislature has allocated $28 million or 12% of Lottery proceeds to economic development programs. These include:
- Housing Trust Fund – Provides affordable housing across Washington.
- Broadband Office – Expands access to high-speed internet in underserved communities.
- Community Economic Revitalization Board (CERB) – Funds infrastructure improvements to boost economic growth.
Health and Human Services
About $24 million or 10% of Lottery proceeds go towards health and human services programs. Key initiatives funded include:
- Apple Health for Kids – Provides health coverage for children from low-income families.
- Family Planning Grants – Funds family planning services across the state.
- Client Benefits System – Modernizes technology systems for public assistance programs.
- Didgwálich Wellness Center – Supports construction of a healthcare facility serving the Puyallup Tribe.
Natural Resources and Recreation
Just over $5 million or 2% of Lottery proceeds are allocated to natural resources and outdoor recreation programs. These include:
- Salmon Recovery Funding Board – Restores salmon habitat across Washington.
- Recreation and Conservation Office Grants – Funds local parks, trails and recreation facilities.
- Puget Sound Estuary Restoration – Restores estuaries in Puget Sound.
Lottery Contributions Over Time
Since the Washington Lottery began in 1982, it has contributed over $4.5 billion to the state General Fund through Fiscal Year 2022. This includes:
- $3.2 billion for education
- $660 million for economic development
- $490 million for health and human services
- $130 million for natural resources and recreation.
The chart below shows total Lottery proceeds contributed to the state each fiscal year from 1983 through 2022:
| Fiscal Year | Lottery Contribution (millions) |
|---|---|
| 1983 | $50 |
| 1984 | $53 |
| 1985 | $55 |
| 1986 | $54 |
| 1987 | $52 |
| 1988 | $47 |
| 1989 | $49 |
| 1990 | $54 |
| 1991 | $57 |
| 1992 | $57 |
| 1993 | $58 |
| 1994 | $106 |
| 1995 | $130 |
| 1996 | $135 |
| 1997 | $139 |
| 1998 | $148 |
| 1999 | $159 |
| 2000 | $167 |
| 2001 | $179 |
| 2002 | $185 |
| 2003 | $192 |
| 2004 | $194 |
| 2005 | $200 |
| 2006 | $205 |
| 2007 | $213 |
| 2008 | $218 |
| 2009 | $216 |
| 2010 | $204 |
| 2011 | $211 |
| 2012 | $224 |
| 2013 | $230 |
| 2014 | $236 |
| 2015 | $242 |
| 2016 | $253 |
| 2017 | $280 |
| 2018 | $288 |
| 2019 | $300 |
| 2020 | $315 |
| 2021 | $320 |
| 2022 | $330 |
As the table shows, Lottery contributions have grown substantially over the past 40 years, from $50 million in 1983 to over $320 million in 2022. This steady increase in proceeds has allowed the Washington Lottery to contribute more funding each year for vital state programs and services.
Lottery Funding by County
While Lottery proceeds go into the state General Fund to be appropriated by the Legislature, the funds are spent across Washington’s 39 counties. The table below shows Lottery funding allocations by county for the 2023 fiscal year:
| County | 2023 Lottery Funding Allocation |
|---|---|
| Adams County | $1.2 million |
| Asotin County | $800,000 |
| Benton County | $3.1 million |
| Chelan County | $2.1 million |
| Clallam County | $2.3 million |
| Clark County | $14.2 million |
| Columbia County | $500,000 |
| Cowlitz County | $2.8 million |
| Douglas County | $1.1 million |
| Ferry County | $400,000 |
| Franklin County | $1.8 million |
| Garfield County | $100,000 |
| Grant County | $1.7 million |
| Grays Harbor County | $2.4 million |
| Island County | $1.2 million |
| Jefferson County | $700,000 |
| King County | $44.1 million |
| Kitsap County | $4.7 million |
| Kittitas County | $1.5 million |
| Klickitat County | $800,000 |
| Lewis County | $1.8 million |
| Lincoln County | $500,000 |
| Mason County | $1.6 million |
| Okanogan County | $1.3 million |
| Pacific County | $800,000 |
| Pend Oreille County | $600,000 |
| Pierce County | $17.2 million |
| San Juan County | $500,000 |
| Skagit County | $2.6 million |
| Skamania County | $500,000 |
| Snohomish County | $17.4 million |
| Spokane County | $12.3 million |
| Stevens County | $1.1 million |
| Thurston County | $5.2 million |
| Wahkiakum County | $100,000 |
| Walla Walla County | $1.5 million |
| Whatcom County | $4.7 million |
| Whitman County | $1.3 million |
| Yakima County | $5.1 million |
As the table shows, larger counties like King, Pierce and Snohomish receive the biggest allocations of Lottery funds, while smaller counties like Garfield, Wahkiakum and San Juan receive much less. However, Lottery proceeds benefit programs and services across all of Washington’s diverse counties.
Major Projects Funded by the Lottery
While most Lottery proceeds go to ongoing programs and services each year, occasionally major one-time projects are funded as well. Here are some notable examples:
Safeco Field
In 1997, the Legislature allocated $300 million in Lottery bonds to help fund construction of Safeco Field in Seattle. The bonds were paid back over time using Lottery revenues. The stadium opened in 1999 as the home of the Seattle Mariners baseball team.
Washington State Convention Center
The Legislature approved $111.7 million in Lottery bonds in 2000 to expand the Washington State Convention Center in downtown Seattle. The bonds helped fund a large expansion that doubled the center’s size.
Puget Sound Regional Transit Authority
In 2015, the Legislature provided $69 million in Lottery funds to the Puget Sound Regional Transit Authority (Sound Transit) to support planning and environmental review of potential regional transit projects.
Community College Workforce Grants
In recent years, the Legislature has allocated Lottery funding to the State Board for Community and Technical Colleges for workforce training grants. These help community colleges quickly set up training programs tailored to meet local employer needs.
The Future of the Washington Lottery
Since beginning in 1982, the Washington Lottery has grown steadily as a revenue generator for important state programs and services. Some key facts about the future direction of the Lottery include:
- Sales are projected to continue growing at 2-3% annually in coming years.
- New Lottery games and features are continually introduced to keep offerings fresh and exciting for players.
- Online products and mobile apps are a strategic focus to stay relevant and accessible.
- Beneficiary allocations will continue following priorities set by the Legislature.
While years ahead will bring changes, the Washington Lottery’s fundamental mission of responsibly generating proceeds to help fund state priorities will remain.
Conclusion
In conclusion, money raised by the Washington State Lottery provides substantial and vital support for key programs across the state. While the Legislature makes specific funding allocations each biennium, Lottery proceeds broadly benefit education, economic development, health and human services, and natural resources and recreation. Since 1982, the Lottery has contributed over $4.5 billion to the state budget. And with continued responsible management, it will keep providing essential revenue for Washington in the years ahead.